No Guarantor Loans: Pros and Cons That You Should Know

The UK online finance market is flooded with thousands of loans of different types. No guarantor loans are one of the most promising unsecured funds that people choose to fulfil their financial needs and overcome various crises. Now the question arises, are these funds viable and legitimate? Well, of course, these financing options are legitimate and approved by the Financial Conduct Authority (FCA). But, the problem is both certified and non-certified direct lenders offer these funds. The applicants have to be highly cautious if they want to get genuine and trouble-free cash.
No guarantor funds have various pros and cons that you should know before you apply:

Pros:

• No tough eligibility criteria. Any 18-75 years old resident in the UK can apply. CCJs, bankrupt, default, and bad credit customers are absolutely eligible.

• An easy and quick online application procedure with no hurdles. The applicants need to devote only 2 minutes to complete the application process. There is no need to go anywhere. No queues and no waiting.

• Loans for bad credit with no guarantor are especially designed for hopeless poor credit customers whose funding applications have been rejected by all traditional banks and other financing institutions.

• Gone are the days when you had to submit numerous documents to the lending company for getting the approval. Now, with the advent of financial technology (FinTech), paperwork has completely gone. You don’t even have to attach scanned copies with the online form.

• As the name suggests, you can access these funds without a guarantor. You don’t have to chase co-signers and plead them for co-signing your application.

• You don’t have to pledge any valuable assets to avail loans for people with bad credit.

• As the competition between the direct lenders is so high, you have a good chance to get an extra discount on the APR.

• You can get the fast approval as there is no credit check or the direct lending companies carry out the “soft credit check” only.

• Highly customised repayment modes don’t overburden the monthly budget of the borrower. You can repay the loan with no guarantor in easy installments.

Cons:

• Chances of a lending fraud are high as numerous non-certified direct lenders are offering bogus deals.

• The total cost is usually high due to the presence of extra charges i.e. lender’s fee, upfront fee, processing fee, and more.

Overall, no guarantor loans have various benefits that you can’t ignore. Yes, these funds have very few cons, but you can avoid them by applying to a reliable and certified direct lender.

Millie Brown is working as a lending consultant with a reputable direct lending company in the UK. He loves to share genuine information on various types of loans.